During 2004 China increased its use of global oil by 40%. This followed a 100% increase during the previous 5 years. How do economists refer to this kind of economic event?

Question

Quizplus · Accepted Answer

Economists refer to this kind of economic event as a demand shock, which occurs when there is a sudden and significant increase in demand for a particular good or service. In this case, the increase in China's use of global oil by 40% in 2004 and a 100% increase during the previous 5 years is a clear example of a demand shock.

During 2004 China Increased Its Use of Global Oil by 40